Falling food prices drag Turkish inflation lower in June

Business Monday 03/July/2017 13:35 PM
By: Times News Service
Falling food prices drag Turkish inflation lower in June

Istanbul: A decline in food prices dragged Turkish inflation lower in June, official data showed on Monday, with the 10.9 percent annual rise in the consumer price index marking a further fall from the 8-1/2 year peak hit in April.
Month-on-month, consumer prices dipped 0.27 per cent in June, the Turkish Statistics Institute said, compared with a forecast rise of 0.1 per cent in a Reuters poll.
Food prices dropped 1.06 per cent on the month, while clothing and transport prices also fell, offsetting rises in the education, restaurants and hotel sectors, the data showed.
"The declining food prices led to a positive surpirse in inflation this month," said Muammer Komurcuoglu, an economist at Is Investment. "After today's figure, the possibility has emerged of inflation hitting single digits in July."
However, he said annual inflation was likely to rise again in August. Consumer price inflation hit an 8-1/2 year peak of 11.87 per cent in April.
Producer prices rose 0.07 per cent month-on-month in June for a year-on-year rise of 14.87 per cent, the data showed.